Global stock markets surge after weeks of losses

Darnell Taylor
March 25, 2020

Both Democrats and Republicans said Tuesday they were close to agreeing on a massive economic rescue package, which will include payments to US households and aid for small businesses and the travel industry, among other things.

Investors hope that the U.S. Senate will pass a $2 trillion (1.7 trillion pounds) stimulus bill, aimed at providing financial aid to Americans out of work and help distressed industries, as early as Tuesday.

At 04:44 GMT, the benchmark June E-mini S&P 500 Index is trading 2389.00, down 49.00 or -2.01%.

Tuesday's increase in the Dow - to 20,704.91 - broke a point record set March 13, when the blue chip index shot up 1,985 points.

On Tuesday morning, House Speaker Nancy Pelosi told CNBC that there is "real optimism" Congress can clinch a pact within a few hours.

At 13:11 p.m. ET the Dow Jones Industrial Average .DJI was up 1,491.90 points, or 8.02%, at 20,083.83, the S&P 500 .SPX was up 153.38 points, or 6.86%, at 2,390.78 and the Nasdaq Composite .IXIC was up 394.84 points, or 5.76%, at 7,255.52.

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However, expectations that the stimulus bill talks may extend into Wednesday morning due to the two parties working through the text and hashing out the final details, may be weighing on the USA indexes during Wednesday's pre-market session.

The stock market has been falling for weeks as much of the global economy has been shut down in an effort to slow the spread of the coronavirus. On Tuesday, the market had another record day. I hate this kind of rally.

"They want to see the government throw out all the backstops to help support low income or service oriented consumers", said Andrew Smith, chief investment officer at Delos Capital Advisors in Dallas, Texas.

Furthermore, the volatility or fear index remains near its all-time high reached last week at 82.69, which means investors are still nervous about the future.

The Australian dollar gained almost 1% during the day to be at 59.10 United States cents and was trading around that level in early Asian dealings on Wednesday. The UK's FTSE index was trading higher by 3.9%, while French CAC 40 Index rose 4.7%. This is hardly the movement to expect of a "new" bull market.

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